Bankruptcy FAQ
Chapter 7 Information
Chapter 13 Information
Below you will
find many of the most commonly asked questions regarding Bankruptcy. Click each question below
to view the answer. All questions and answers below are
general in nature and do not constitute legal advice. If after reading the frequently
asked questions below, your questions are not answered, please
contact us by phone at (817) 924-9000 or email at info@higginsandassociates.com.
General/Before
Filing
-
What
is the Difference between a chapter 13 and a chapter 7 bankruptcy?
-
Who
will know about it?
-
Will
filing affect my job?
-
Will
the bankruptcy appear on my credit report? If so when will
it appear?
-
Someone
else cosigned on a debt with me, how will this affect him?
-
Who
contacts my creditors?
-
What
debts do I have to continue paying for?
-
Can
my creditors object to the plan?
-
Where
can I find out how much I how the IRS or get past tax returns?
-
Can
I leave some debts and assets out of the plan?
After
Filing
-
What
is 341 meeting?
-
When
is the 341 meeting?
-
Can
I reschedule my 341 meeting?
-
Where
is the 341 meeting?
-
What
documents do I need to bring to the 341 meeting?
-
Who
will be at the 341 meeting?
-
What
will happen at the 341 meeting?
-
When
is my 1st payment due?
-
Who
is the Trustee and what is his job?
-
Who
do I make my payments to?
-
What
if I cannot make all of my monthly payment to the Trustee?
-
What
if I can afford to make more than my normal monthly payment?
-
Can
I still lose my house or car?
-
What
if I failed to list a creditor?
-
What
is the "automatic stay" and why is it important?
-
What
is a proof of claim and why are creditors sending it to
me?
-
My
creditors are still calling me and sending me bills, what
should I do?
-
Why
do I need to put my questions in writing?
Rebuilding/Reestablishing
Credit
-
How
fast can I start to rebuild my credit?
-
How
can I rebuild my credit?
-
How
long will it be until I can get a new house or car?
-
How
long will this bankruptcy stay on my credit report?
A Chapter
7 bankruptcy discharges all dischargeable debts. These
often include credit card debt, old tax debts, and other unsecured
debts. A Chapter 13 bankruptcy allows the debtor to reorganize
their debts. A repayment plan is established and payments
are made to the trustee's office for 36 to 60 months.
The advantage of a Chapter 13 bankruptcy is that it allows debtors
to include back house payments, taxes, and even cars in the
plan. Unsecured debts, such as credit cards, are repaid
a portion of the amount owed to them.
After we
file your petition, we notice (contact) all of your creditors.
Any debt
that is not being paid through the the Chapter 13 bankruptcy
must be paid direct. These often include your current
house payment (many times your back house payments are
included in the consolidation) and sometimes car payments.
Check with your attorney to make sure you are aware of which
payments you are responsible for. Also, you must continue
to pay for normal expenses such as food, insurance, utilities,
etc.
In a Chapter
13 bankruptcy, the creditors cannot object to the discharge
of debts upon the completion of payments. However, creditors
can object to confirmation of the repayment plan. Contact
our office if you have questions or think that a creditor has
objected.
If you are
missing needed tax returns you can obtain IRS transcripts for
little or no charge. These can be used instead of tax
returns. Transcripts can be obtained two ways:
1) To get them immediately, go to:
1100 Commerce St.
Room 1-A-02
Dallas, TX 75242
map
2) Call the IRS at (800) 829-1040 to order your transcripts
by mail. This will take 10-14 days to receive these documents
by mail.
No.
You must list all debts and assets in the plan. This does
not mean that you will have any of your possessions taken.
In fact very few people lose any of their possessions.
Nor does it mean that you will be paying all of your debts through
the consolidation, debts such as a home, or sometimes a car
are often paid directly to the creditor. Check with your
attorney if you are not certain as to which debts you are paying
direct.
Though filing
a bankruptcy is public information, unless you are a public
figure, it is unlikely that anyone except your creditors and
those that you tell will know. Currently in Tarrant county,
bankruptcies are not listed on the internet, newspaper, or television.
No. Law
prohibits governmental units and private companies from discriminating
against you because you filed a bankruptcy petition or because
you failed to pay a dischargeable debt.
The 341
is a meeting the meeting of creditors, though few ever actually
show. This meeting allows creditors to object to the bankruptcy.
If they do attend this meeting, your attorney will assist you
in dealing with them.
Your 341
meeting is typically held on a Tuesday about 50 days after your
case is filed. You will get notice of it in mail
from the Trustee's office, as well as from your attorney's office.
The 341
meeting is held at the chapter 13 trustee’s office. You
must show up at 8:30 A.M.
The Dallas
Trustees' office is located at:
125 E John Carpenter Fwy
Suite 1100
Irving, TX 75062
map
You will
need to bring your driver's license and social security card.
The trustee will send notice asking you to bring a copy of schedule
I, schedule J, mailing matrix, three pay stubs and the last
three years of tax returns. We have the copies of schedule
I, schedule J, and mailing matrix, and you should have turned
in three tax returns and three pay stubs to us. Unless
you received notice from our law office that we still need some
of the documents, you will not need to bring anything to the
meeting.
In addition
to yourself, and spouse if co-filing, an attorney from our office
and a hearing officer will be present. Creditors are also
welcome at this meeting, but few ever show.
You will
show up promptly at 8:30 A.M. They will take role and
then Tom Powers, the chapter 13 Trustee will talk. The
attorneys will then go to the back of the room. You will be
called back into a booth. There your attorney and an officer
of the Trustee's office will ask you a few questions regarding
your petition. Before or after you are called back, you
will watch a film about the process. After a lunch break
you listen to speakers and/or watch a video about how to save
money and what to anticipate while going through the bankruptcy
process.
Your first
payment is due exactly 45 days after we file your case.
You must make this payment to the the Trustee's office regardless
of whether your 341 meeting has taken place. Make sure
you include your case number on your payment.
For Dallas
Cases, send your payments to:
Tom Powers, Chapter 13 Trustee
P.O. Box 650704
Dallas, TX 75265
or take
your payment to:
125 E John Carpenter Fwy
Suite 1100
Irving, TX 75062
map
Back
to Top
Make your
payments payable to Tim Truman, Chapter 13 Trustee and include
your case number on the money order, cashier's check, or personal
check.
For Dallas
Cases, send your payments to:
Tom Powers, Chapter 13 Trustee
P.O. Box 650704
Dallas, TX 75265
or take
your payment to:
125 E John Carpenter Fwy
Suite 1100
Irving, TX 75062
map
It is very
important that you do everything in your power to make your
monthly payments on time. Your first payment is due 45
days after we file your case. Failure to make this first
payment is grounds for dismissal of your case, so be sure to
make your first payment on time. If for some reason
you cannot make your regular payment, let our office know.
There are certain remedies our office maybe able to take to
avoid dismissal of your case, but only if you let us know before
the payment is missed.
The Fort
Worth chapter 13 Trustee is Tim Truman. The Dallas chapter
13 Trustee is Tom Powers. His job is to collect your money
and distribute it and see that creditors are treated fairly
in this process.
It is to
your benefit to pay more. The more you pay the quicker
you will be done with the consolidation. Which means the
sooner you will be out from under the oversight of the Trustee's
office. Your consolidation will be for 36 and 60 months,
but if you pay more than required, you can be done much sooner.
Yes, when
you file a bankruptcy you sought protection from your creditors
by the bankruptcy court. You must continue to make payments
on your house and car, or any debt not included in the consolidation.
If you do not, then your creditors can ask court to give them
relief so they can pursue your home and/or car.
If the car is included in your consolidation, and you are making
your consolidation payments, then the only way a creditor can
get the car is if you let your insurance lapse.
If you fail
to list a creditor, you must give us the name and address
of that creditor and we will amend your plan. The
court does charge $50 to add creditors, so be prepared to pay
this expense when you give the creditor information to us.
No. However
if it is an emergency, then the 341 can be rescheduled one time
as long as you give the attorney a written reason why you can
not attend. This written notice must be given to our office
before your scheduled 341 meeting. The reason will be
given to the trustee when your first hearing is called.
A Chapter
13 bankruptcy is a very complicated process and generally attorneys
do not like to give legal advice over the phone. Having
your question in writing allows us to refer to it when we answer
it. This enables us to be sure to answer it correctly
and in full. It also protects the attorney and yourself
by having a copy of the question and the answer in case of a
misunderstanding. To email us a question, click here.
When you
file a bankruptcy, the bankruptcy court gives you the protection
of the automatic stay. This is a mechanism that does not
allow any creditor to pursue any of the debts that you owe them
or seize your property There are a few exceptions such
as criminal activities. The automatic stay makes it so
you can go through this process with out being harassed by creditors.
If we have filed your case and you are still being harassed
(being sent bills, receiving phone calls, etc.), write down
who (the person, company, time, etc.), is contacting you and
bring that information to our office.
Please note
that it typically takes the creditors 3-4 weeks after we file
your case before the they have processed the notice that we
send them. If we have filed your case and you are still
being harassed ( being sent bills, receiving phone calls, etc.)
several weeks after your filing, write down who (the person,
company, time, etc.), is contacting you and bring that information
to our office. Your creditors may be in violation of the
automatic stay.
A proof
of claim is a document that every creditor must provide to the
court. It shows the amount they claim you owe. They send
a copy to court, to you and to our office. Our Law Office
will review them and take any action necessary. When you
receive a Proof of Claim it is best to retain them until the
process is complete. You do not have to send them to us
or contact us when you receive them, as we are also sent a copy
and are taking the necessary steps to deal with them.
You can
start to rebuild you credit immediately. Most important
is that you make your Chapter 13 payment every month.
Additionally, make sure that all other creditors, such as your
house, car, and any other creditor, not in the consolidation
are reporting your timely payments to the credit bureaus.
Some apartments and utilities will even report payments to the
credit bureaus. Remember, any new debt must be approved
be the Trustee's office. Contact our office if you are
considering incurring any new debt.
Most important
is that you make your Chapter 13 payment every month.
In addition to this, make sure that all of your other creditors,
such as your house, car, and any other creditor, not in the
plan are reporting your timely payments to the credit bureaus.
Some apartments and utilities will even report payments to the
credit bureaus. Remember, any new debt incurred while
you are within the bankruptcy process must be approved be the
Trustee's office. Contact our office if you are considering
incurring any new debt.
Generally,
you can qualify for a new house or car within a year or so.
This depends on several things, such as current income, payment
history, down payments, etc. Remember, any new debt incurred
while you are within the bankruptcy process must be approved
be the Trustee's office. Contact our office if you are
considering incurring any new debt.
Yes, it
will appear on your credit report. When it appears depends on
the credit companies and credit bureaus. Typically, it
appears on your credit report, in some manner, between one and
three months after you file.
If the debt
is a dischargeable (credit card, repossession, etc.), then you
will not have to pay it. Your co-signer will become primarily
responsible for this debt. Though the creditor may not
peruse the co-signer immediately, they may in the future.
A special automatic stay protects certain co-signers during
the bankruptcy proceeding.
A Chapter
13 bankruptcy will typically stay on your credit report for
about seven years.
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